nep-cul New Economics Papers
on Cultural Economics
Issue of 2019‒04‒29
four papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Does music quality matter for audience voters in a music contest? By Budzinski, Oliver; Kohlschreiber, Marie; Kuchinke, Björn; Pannicke, Julia
  2. Stars in social media: New light through old windows? By Gaenssle, Sophia; Budzinski, Oliver
  3. Measuring competitive balance in Formula One Racing By Budzinski, Oliver; Feddersen, Arne
  4. Do high wage footballers play for high wage teams? By Rachel Scarfe; Carl Singleton; Paul Telemo

  1. By: Budzinski, Oliver; Kohlschreiber, Marie; Kuchinke, Björn; Pannicke, Julia
    Abstract: There are numerous studies analyzing factors of success in media-broadcasted artistic contests, especially music competitions. However, one factor that is generally neglected in the literature is the quality of the artistic performances (i.e. "music quality"). In this paper, we approach this research gap by developing two novel concepts of music quality and by employing unique measures during the empirical analysis of a popular German music television contest in order to analyze how different dimensions of the music and performance quality influences the final voting results. We use the complete historical voting dataset of the music contest from its inception in 2005 until its last broadcast in 2015, collecting 2,816 observations in total. First, we define dimensions of "objective quality" according to insights from musicological research/literature. Second, we conceptualize dimensions of "subjective quality" because music preferences may be subjective and are not necessarily based on how experts' define "good" music. We measure these subjective dimensions in an experimental setting with students from two German universities. Our analysis shows that different quality dimensions affect the outcome of voting results in different ways and not all quality dimensions reveal themselves as significant. In general, subjective quality dimensions turn out to be more relevant than objective ones. The differentiated results of our analysis support the value of our approach to deconstruct quality into different dimensions and test them individually.
    Keywords: music contest,cultural economics,media economics,econometric analysis,success factors,voting bias,music industry
    JEL: L82 Z10 C50
    Date: 2019
  2. By: Gaenssle, Sophia; Budzinski, Oliver
    Abstract: We review the economics of superstars, originally developed for stars in traditional media, and discuss whether they are applicable for the (allegedly) novel phenomenon of stars in social media (influencer, micro-celebrities). Moreover, we analyse potentially new factors for creating social media superstardom that may be special to the nature of social media. Our overall result is that the economics of superstars, like the role of talent, market concentration effects, MacDonald-style and Adler-style effects, remain applicable and relevant for social media stars. In line with this assessment, we find that several (allegedly) new star factors in social media, like user-generated content, prosumption, disappearance of gatekeepers and authenticity, turn out to be only partly applicable or just slightly different to traditional concepts. However, algorithm management and upload strategies represent novel success factors relevant for social media superstardom that are not captured by traditional superstar theories.
    Keywords: social media,digital media,popularity,superstars,cultural economics,media economics,influencer,micro-celebrities,creators,user-generated content,prosumer,algorithm management,YouTube,Instagram,entertainment markets
    JEL: L82 Z10 L13 L15 L86 D43 D83 F23 M21 D91 L26
    Date: 2019
  3. By: Budzinski, Oliver; Feddersen, Arne
    Abstract: The Formula One Championship (F1) is one of the biggest sports businesses in the world. But, however, it seems to astonish that only very few scholarly articles analyze the F1 business. The aim of this study is to contribute to closing two gaps in the existing literature: it contributes (1) to the (sports) economic analysis of the F1 business and (2) to the literature on competitive balance in non-team sports. Like competitive balance in team sport leagues, also for F1 racing three dimensions can be distinguished: (a) race-specific competitive balance, (b) within-season competitive balance, and (c) between-season competitive balance. In addition to classical tools and data, some new and F1 specific indicators, like average lead changes or leading distance, are employed. Also, pitfalls induced especially by the used data source or calculation method are highlighted.
    Keywords: Formula One Motor Racing,competitive balance,empirical industry study,sports economics
    JEL: L83 C01 L13 M21
    Date: 2019
  4. By: Rachel Scarfe (School of Economics, University of Edinburgh); Carl Singleton (Department of Economics, University of Reading); Paul Telemo (School of Economics, University of Edinburgh)
    Abstract: Intuition and sports knowledge suggest the best professional footballers play for the best teams, i.e. positive assortative matching between employer and employee on productivity. We use wage data for all players and teams in Major League Soccer between 2007 and 2017 and find that estimated player and team fixed wage effects are negatively correlated. This is a puzzle, which could be explained if players match to teams according to some compensating wage differential, for example from a desire to play for successful teams. The estimated wage premiums of teams are highly and negatively correlated with their success in the league (productivity).
    Keywords: firm-specific wages, AKM wage equation, matching, superstar pay
    JEL: J31 J49
    Date: 2019–04–07

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